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August 2007 Ministry of Finance - Capital Procurement Checklist 1

Capital Procurement Checklist - Overview



The Ministry of Finance has recently implemented a capital procurement checklist to
support the Capital Asset Management Framework (CAMF) and related provincial
policies for capital projects. The checklist is a comprehensive listing of minimum
expectations and requirements that currently exist for publicly-financed capital
construction project procurement undertaken by provincial public sector agencies.

The checklist is based on the principle that taxpayers are best served through
competitive procurement processes that are open, fair and transparent. The process
should be well-structured, objective and inclusive. Bidders will be more likely to
participate, and there will be more competition, where the selection process is clear and
well understood, and where the risks between contractor, design authority and the public
sector owner are allocated to those best able to manage them.

The checklist is based on the lifecycle phases of typical capital construction
procurement, from conceptual plans through business case approval, the selection and
contracting of advisors, development of tender documents, the tender process, and
execution of contracts. The checklist identifies procurement objectives, key risks, criteria
and examples of evidence that demonstrates that the criteria were met.

The checklist was developed based on the following assumptions that:
individuals managing capital procurement are qualified and knowledgeable with
respect to public sector procurement processes.
individuals managing capital procurements are fully aware of the contents of the
CAMF, Chapter 6 (Procurement) of the Core Policy and Procedures Manual
(CPPM), inter-governmental trade agreements and any procurement policies
which apply to the specific agency.
all documentation provided as evidence is of an appropriate standard and
quality, exhibits an appropriate level of due diligence and has received the
necessary approvals.

There may be subsequent refinements to the checklist should results indicate that
further clarity is needed to help ensure adherence with provincial policy.

Although the checklist currently does not specifically address other aspects of the
procurement process such as administration, monitoring, reporting and contract
evaluation, it is expected that the provisions of the CAMF and CPPM Chapter 6 related
to these elements of the procurement process will continue to be adhered to.

This checklist should be used in conjunction with the CAMF and CPPM Chapter 6, which
provide further detail on governments capital policy. The CAMF, along with links to other
relevant policies for capital projects, can be found on the Ministry of Finance website at
http://www.fin.gov.bc.ca/tbs/camf.htm. CPPM Chapter 6 can be found at
http://www.fin.gov.bc.ca/ocg/fmb/manuals/CPM/06_Procurement.htm .

August 2007 Ministry of Finance - Capital Procurement Checklist 2
Capital Procurement Checklist Frequently Asked Questions

What is the checklist?
The checklist is a comprehensive summary of the governments minimum expectations
and requirements that currently exist for capital construction procurement undertaken by
public sector agencies. This includes publicly financed procurement in the form of
construction management, stipulated price or design-build approaches.
All public sector agencies are expected to immediately begin using the checklist to
assess adherence to provincial procurement policies.

Who must use the checklist?
J ust as with governments capital policies, the checklist applies to all provincial
government ministries and public sector agencies including taxpayer-supported and
commercial Crown corporations, Health Authorities, post-secondary institutions and
school districts.

What projects does the checklist apply to?
The policies and principles in the checklist apply to all service and construction contracts
associated with capital construction projects that are procured using a design-bid-build
or construction management procurement process with provincial funding over the
following amounts, which are the current competitive thresholds under existing policy:
Services associated with
construction (Including
Consulting)
Construction
Ministries, Agencies, Boards and
Commissions
$ 75 K $100 K
Post-Secondary, Education and Health
Sectors
$ 100 K $250 K
Crown Corporations $ 500 K $5 million
Not all service and construction contracts associated with capital construction projects
above these thresholds are required to be reviewed. Determination of which contracts
are to be reviewed should be done using a risk-based assessment approach. This
higher-level approach considers the broader risks to a ministry in relation to its goals and
objectives and may include considerations such as procurement methodology, impact on
service delivery, environmental, economic & social impacts, and ministerial
interdependencies. For assistance in developing a risk-based assessment tool, please
contact the Risk Management Branch at 250-356-8915.
The checklist does not apply to other types of capital acquisitions or projects such as
goods and information technology systems.

August 2007 Ministry of Finance - Capital Procurement Checklist 3
Does the checklist apply to public private partnership projects?
No it does not.
The checklist was designed to reflect the procurement process that would be followed
for a stipulated price, design-build or construction management model. The
procurement model for public private partnerships involves different processes and
contractual arrangements.
For each public private partnership, following the conclusion of a contract agreement,
the procurement process is made public in a value for money report. These projects
also typically have a "fairness advisor" who observes the procurement process and
reports out periodically.
However it is important to note that the underlying policy requirements and objectives of
fair, open and transparent procurement apply to all procurement models including public
private partnerships.

Why is this checklist needed?
The checklist reinforces existing policy and provides an additional level of detail and
assurance that will assist agencies in meeting the objectives of fairness, openness,
competition, and transparency in the procurement process.
The checklist is based on best practices and the requirements set out in the provinces
Capital Asset Management Framework, Chapter 6 (Procurement) of the Core Policy and
Procedures Manual, and other related capital policies. Its use will support consistent
procurement practices across the public sector.

How does this checklist change the procurement process?
The procurement process remains unchanged; the checklist does not impose new
requirements on the process; it provides a detail and clear expectations for existing
government policy. It is also serves as a comprehensive tool for reviewing procurement
processes.

How is the checklist used?
For new projects: the checklist will help guide procurement managers design a
procurement process, based on best practices that will meet government policy
requirements.
For procurement processes and projects that are completed: the checklist will be used to
assess if best practices were followed and government policy requirements were met
and can also identify ways the procurement process can be improved on future capital
construction projects.


August 2007 Ministry of Finance - Capital Procurement Checklist 4
Who performs reviews of compliance against the checklist?
Each ministry will determine who performs reviews. They can be conducted by internal
or external auditors, ministry staff or external agencies. Internal Audit and Advisory
Services in the Ministry of Finance is available to undertake adhoc reviews on a cost
recovery basis.

For completed procurement processes/projects: ministries are responsible for ensuring
that reviews are conducted on a selection of completed procurement processes/projects.
Each Ministry and agency can determine, using a risk-based assessment, which
completed projects/processes will be evaluated using the checklist. Treasury Board, or
the Ministry of Finance may also provide direction on specific projects to be reviewed.
Agencies should contact their responsible ministry to determine the process for
conducting reviews for completed procurement processes and projects.

Where can I get more information and resources on procurement?
Training resources
Procurement and Contract Management Program governments new comprehensive
procurement training program
http://www.procurementlearning.gov.bc.ca/

Policy resources
Capital Asset Management Framework
http://www.fin.gov.bc.ca/tbs/camf.htm
Core Policy and Procedures Manual
http://www.fin.gov.bc.ca/ocg/fmb/manuals/CPM/CPMtoc.htm
Agreement on Internal Trade (AIT)
http://www.ecdev.gov.bc.ca/ProgramsAndServices/Trade/AIT.htm
British Columbia Alberta Trade, Investment and Labour Mobility Agreement (TILMA)
http://www.gov.bc.ca/ecdev/popt/media_room/bc_ab_trade_investment_mobility_agreement.htm
Freedom of Information and Protection of Privacy Act
http://www.qp.gov.bc.ca/statreg/
Financial Administration Act
http://www.qp.gov.bc.ca/statreg/
Risk Management Guidelines and Risk Management Standards
http://www.min.fin.gov.bc.ca/pt/rmb/forms/index.stm


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DESIGN
PHASE

Objective Risk Criteria Evidence Sample Policy
References
1

Identify required
team of design-
related
consultants and
other required
consultants
(such as
planning,
programming,
development,
financial, public
consultation) for
the project with
appropriate
skills.
Required
expertise is
missed.
Identify required
consultants including
prime or lead
consultant, and also
specialist consultants
(e.g. a parking
consultant, quantity
surveyor).
Require coordination of
engineering disciplines.
Evidence from the
planning file (e.g.
Business Case,
Implementation or
Work Plan, Project
Pro-forma) including
terms of reference
and cost estimates for
each consultant.
CAMF, Sections:
4.5. Business
Cases
7.0. Project
Personnel &
Management
9.0. Budget and
Cost
Management
Core Policy and
Procedures Manual
Chapter:
6. Procurement
Implement fair
and open
competitive
selection
processes (RFQ
and RFP) to
evaluate and
select
consultants with
appropriate
regard for
required
expertise,
experience,
capacity and
cost.
Best advisors
(value for
money) are not
selected.
Limited
competition
results in failing
to identify
consultants
with best
expertise or
sufficient
capacity to
meet project
requirements.
Limited
competition
results in failure
to get best
value from
consultants.
Use an open competitive
process so interested
qualified design parties
can participate easily
and at low cost.
Use standard industry
RFQ/RFP and contract
documents, amended as
required, to include
Agencys requirements
for the project providing
sufficient project detail
and including insurance,
indemnification and
limitation of liability
requirements.
Use fair, clear and
transparent selection
criteria that addresses
required expertise.
Confirmation on the
file that the
appropriate expertise
has been identified.
Where specific
expertise is required,
have appropriate
regard for price,
considering benefits to
project of using
required expertise, in
the evaluation and
selection of
consultants.
Competitive selection
documents precisely
define scope of
services, including
coordination services
contract
administration details
and, as possible, time
allotment.
CAMF, Sections:
8.0. Capital
Procurement in
general
specifically
section 8.5.3.1.1
Consultant
Selection
AIT
Chapter 5 ,
Procurement
TILMA
Article 14 ,
Procurement
Core Policy and
Procedures Manual,
Chapter:
6. Procurement


1

Policy references are provided for guidance and examples only. They are not meant to
provide an exhaustive list of all relevant government or agency policy, legislation or trade
agreements relevant to procurement in a particular sector. The Capital Procurement Checklist -
Frequently Asked Questions also provides a list of relevant policy resources that agencies and
auditors should reference.
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Objective Risk Criteria Evidence Sample Policy
References
Selecting on
basis of lowest
cost (rather
than value for
money) results
in incurring
higher capital
and operating
costs due to
inferior design
from less-
qualified
consultants.
Lack of
appropriate
design and field
resources for
construction
administration
leads to poor
integration of
design tasks
and delays and
additional
costs.
Processes that
are not fair,
open and
transparent
breach
provincial policy
regarding
procurement of
services.
Processes
could breach
Agreement on
Internal Trade
(AIT) and the
Trade
Investment and
Labour Mobility
Agreement
(TILMA)
requirements.
Competitive selection
documents clearly
define evaluation
criteria.
Confirmation that
selected firm has
assigned sufficient
staff and time to be
committed to project.
Evidence of numerous
addenda, change
orders, or contract
amendments could
indicate poor design
or scope at time of bid
or poor
communication on
site.
J ustify and document
key decisions
including any
deviations from
procurement policy in
memo to file.

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Objective Risk Criteria Evidence Sample Policy
References
Avoid conflicts
of interest or
unfair
advantage.
Contracts might
be challenged
on basis that
conflicts of
interest caused
bias or
unfairness or
breach of
RFP/tender
invitations.
Project/Agency
loses credibility
if conflicts of
interest or unfair
advantages
arise.

Procurement process
should include formal
consideration to check
for conflicts of interests
or opportunities for
unfair advantages.
Documentation of
policy and sign-off by
all individual
representatives of the
Agency and
consultant.
Provide list of
Agency's consultants
and advisors who are
unavailable to be
retained by
consultants (restricted
parties) in
procurement
documents.
CAMF, Sections:
8.0. Capital
Procurement in
general
specifically
section 8.3. Legal
and Ethical
Issues
AIT
Chapter 5 ,
Procurement
TILMA
Article 14 ,
Procurement
Core Policy and
Procedures Manual,
Chapter:
6. Procurement -
specifically
section 6.3 Pre-
Award and
Solicitation
Develop
functional
programs and
design concepts
with appropriate
input and review
by the Agency.
Design is
developed and
project is
constructed that
does not meet
needs or budget
of Agency.

Review anticipated
design development
process to identify
required Agencys
review.
Require coordination of
engineering disciplines.
Require time for site
inspections.
Use standard industry
contract documents,
with appropriate
design/review
consultation and
responsibility
(schematic design
approval, design
development approval
and working drawings
approval, etc.)
amended to include
Agencys
requirements for the
project.
CAMF, Sections:
8.0. Capital
Procurement in
general
specifically
section 8.5.3.1.2
The Design
Process
9.0. Budget and
Cost
Management
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Objective Risk Criteria Evidence Sample
Policy
References
Prepare
contract
documents
(back-end
documents
technical
specifications,
design drawings
and working
drawings) which
align with the
project
objectives, as
stated in the
business case,
reflect realistic
project
scheduling, and
are
appropriately
complete to
mitigate
schedule and
budget risk.

Design
documents
support fair,
open and
transparent
procurement
process which
provides value
for money.
Project does not meet
functional
requirements.
Project is over budget,
over/under scope and
or over schedule.
Project is delayed or
terminated because
project exceeds
available funds.
Fast tracking is used
unnecessarily and
results in greater risk
exposure to the owner
with respect to
budget, scope and/or
schedule.
Where design
documents are
incomplete, prices
could be higher
because bidders are
forced to include
amount for uncertainty
risk.
Incomplete design
documents could lead
to scope, schedule
and budget
challenges due to
extras and change
orders.
Qualified bidders
decline to bid.
Design documents
give unfair advantage
to one bidder over
another.
Design documents
offer disproportionate
risk allocation.
Prepare complete
functional programs
(schematic designs and
cost estimates) to track
through process.
Have a cost
management strategy,
which includes formal
budget review at defined
milestones.
Prepare complete
design drawings unless
unique project
conditions support less
than complete
documents.
Documents are project
specific and have been
completely reviewed
and coordinated with
Agency and Design
Team members.
Design documents are
complete to the
determined level and
provide sufficient
information as required
by the contracting
market to prepare bids
and prices.
Design documents are
compatible with the
contracting form,
supplying sufficient
information in a way that
does not favour any one
bidder.
Contract administrator
has appropriate
experience for scale of
project.
Contract documents
describe appropriate risk
transfer specific to
indemnity and
insurance.
Evidence of
documentation of
functional
programs.
Business case
includes a risk
assessment and
justification for
proceeding to
tender prior to
completion of
design
documents.
Evidence of
consultation with
Risk Management
Branch, where
appropriate.
Design
documents
(technical
specifications and
drawings) have
been prepared
that meet quality
standard required
and expected by
industry, including
identifying design
life.
Credentials of
contract
administrator of
owner and/or
coordinating
Professional.

CAMF, Sections:
8.0. Traditional
Capital
Procurement
9.0. Budget and
Cost
Management
Procurement
Options Analysis
guidance (under
development).
CAMF, Sections:
8.0. Capital
Procurement in
general
specifically
section
8.5.3.1.3
Preparing
Contract
Documents.

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APPROVAL
PHASE
2

.
Objective Risk Criteria Evidence Policy
Reference
Project has
appropriate
planning
foundation, and
has been
approved by the
appropriate
authority.
Project is released
to market/public
without required
government
approval;
Time and effort is
spent and public
interest is
generated
prematurely
before the project
undergoes
appropriate
investigation.
The outputs
(benefits) and the
scope of the
project are not
clearly defined,
creating the risk
that cost and
schedule controls
will not be
appropriate or
implemented.
Risk that project
must be delayed
and re-scoped or
even cancelled at
tender stage
because it is over
budget , resulting,
for example in
higher
construction costs
because of
inflation; loss of
confidence in the
project.

Have appropriate
business case
approval.
Business case
generally includes:
clear identification of a
need that the project
will fill;
scope of project and
draft deliverables;
link to Service Plan;
cost benefit analysis
with reasonable
assumptions;
project schedule
based on project-
specific requirements;
current reasonable
estimate of the cost of
the project/contract
based on sufficiently
detailed project scope;
financial plan or
project proforma
including anticipated
cash flow schedule;
results of market
sounding (consulting
with potential bidders)
where appropriate (i.e.
where market
response to project,
procurement method
and contract model
are uncertain);

Business case
documentation.
Options analysis
is documented,
including user
input as
appropriate.
Evidence of
appropriate
approvals.
Evidence of cost
management
strategy from the
planning file.
CAMF, Sections:
4. Planning and
specifically
section 4.4 and
4.5 (Options
Analysis and
Business Cases)
5. Consolidated
Capital Plan
Process and
Approvals
9.0. Budget and
Cost
Management
CAMF Business
Case Tool Kit
(under
development).

2
Approvals can take place at one or more milestones during the life-cycle of a project. Typically
a project would require some level of approval, based on an appropriate business case, prior to
significant design effort being undertaken. In addition, from a procurement audit prospective -
this phase recognizes projects commonly require approval before proceeding to a tender phase.
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Objective Risk Criteria Evidence Policy
Reference
Inconsistent with
Capital Asset
Management
Framework
(CAMF) approval
processes.
solicitation/
procurement plan
(including description
of the consultants that
will be required; a plan
as to when each will
be required; and a
description of the
anticipated
procurement/
appointment method).

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TENDER
AND
AWARD
PHASE

Objective Risk Criteria Evidence Policy
Reference
Procurement
Planning
Stage:

Determine
optimum risk
allocation to
minimize cost
to the Agency.
Inappropriate
allocation of
risk to
contractor
could result in
too high
tender/contract
price, and/or
risk of
claims/disputes
regarding
contractors
unanticipated
costs.
Project-specific
risk analysis
undertaken in
context of
current market
conditions.
Determine
appropriate
insurance and
bonding.
Evidence of appropriate
and informed risk analysis
completed as part of
approved business plan.
Evidence of consultation
with Risk Management
Branch, where
appropriate.
CAMF, Sections:
4. Planning and
specifically section
4.4 and 4.5
(Options Analysis
and Business
Cases)
CAMF Business Case
Tool Kit (under
development).
Optimize
procurement
strategy to
encourage
competition
and meet
project
objectives.
Lack of interest
from qualified
bidders;
Procurement
approach does
not achieve
project
objectives or is
not appropriate
to manage
Agency risks.
Informed
analysis of
procurement
options
undertaken.
Procurement
options analysis
based on
procurement
option guidance.
Procurement
option which
best meets
project
objectives is
selected.
Evidence of
comprehensive and
project-specific
comparison of different
procurement methods and
form of contract (design-
bid-build; design/build;
construction
management), as part of
approved business plan.
CAMF, Sections:
4. Planning and
specifically section
4.4 and 4.5
(Options Analysis
and Business
Cases)
CAMF Business Case
Tool Kit (under
development)
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Objective Risk Criteria Evidence Policy
Reference
Select
construction
contract form
and payment
regime that is
matched to
project -
specific
conditions and
will achieve
lowest overall
cost.
Higher tender
prices.
Analysis of
project-specific
conditions and
risks, including
scope,
complexity,
location and
market
conditions, to
determine
appropriate form
of contract.
Use of
procurement
options
guidance.
Evidence of assessment
of project specific
conditions and risks
(documentation
referenced in business
plan).
Evidence of review of
contract options such as
lump sum; cost-plus;
construction
management, etc.
Documentation in
business case of
justification for form of
contract chosen.
Select form of contract
before preparing tender
documents.
CAMF, Sections:
4. Planning and
specifically section
4.4 and 4.5
(Options Analysis
and Business
Cases)
CAMF Business Case
Tool Kit (under
development)
Implement
fair, open
procurement
and award
that gains the
confidence of
the bidders
and the public
and provides
best value for
taxpayer
dollars.
Unfairness, or
even the
potential of
unfairness or
lack of
openness puts
project at risk.
Project does
not achieve
best value for
money
through, for
example,
limited
competition.
Documentation
prepared with
the objective of
establishing a
fair (to qualified
bidder), open
and transparent
(to the public)
and accountable
process which
provides the
best value for
money.
Documentation which
adequately describes the
scope of work and the
expertise required, which
is advertised appropriately
(i.e. BC Bid).
CAMF, Section:
8.0. Capital
Procurement
AIT
Chapter 5 ,
Procurement
TILMA
Article 14 ,
Procurement
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Objective Risk Criteria Evidence Policy
Reference
Pre-
qualification:

Prequalification
is used only in
appropriate
circumstances,
for example, for
projects
requiring
contractors with
specific skills,
experience,
financial
capacity or
other
characteristics,
or where the
cost of bidding
is unusually
high, agencies
may consider
using
prequalification
processes that
will invite
contractors with
desired
expertise and
do not unfairly
favour specific
contractors.
Pre-
qualification is
used
unnecessarily
restricting
competition
and potentially
reducing
competition
and
compromising
potential value
for money.
RFQ
description is
too imprecise
resulting in
qualified
parties failing
to respond
making them
ineligible to
submit
tenders.
RFQ
requirements
are too
narrow,
resulting in
the exclusion
of qualified
bidders and
thereby
reducing
competition
and
compromising
potential value
for money.

Analyze whether
the specific
contract, or the
project, would
benefit from pre-
qualification
process (for
example where
specific
qualifications are
required as a
condition of
award; or where
there is risk that
lowest price from
poorly qualified
bidder will not
achieve lowest
cost to Agency; or
where market
interest will be
heightened and
competition
improved by
restricting actual
number of
bidders).
Follow
Governments
Pre-Qualification
guidance
document.
Write RFQ so
interested parties
can participate
with reasonable
cost and effort.

Evidence of
consideration that
shows fair process to
qualify and solid
grounds for selection
(memo to appropriate
signing authority with
approval). Internal
sign-off by Agency
calibrated to size of the
project.
Copy of RFQ
documentation --
standard, or if not
standard,
documentation on why
and on approval.
RFQ selection criteria
are clear and concise.
If prequalification is
used, then at tender
stage, qualification is
no longer grounds for
selection such that, all
else being equal,
lowest compliant bid
such be selected.
CAMF, Sections:
8.0. Capital
Procurement in
general
specifically section
8.5.3.2.4
Contractor
Prequalification
Provincial Pre-
Qualification
Guidelines and
Principles CAMF
Toolkit (Under
development)
AIT
Chapter 5 ,
Procurement
particularly Article
504 Reciprocal
Non-discrimination
TILMA
Article 14 ,
Procurement
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Objective Risk Criteria Evidence Policy
Reference
Pre-qualification asks
only for information that
is specifically relevant to
the pre-qualification
process (for example,
work on hand, project of
similar size, scope or
complexity, key project
personnel, bonding
capacity, ability to
obtain the required
insurance, safety record
etc).
If RFQ is used, potential
project, or at least the
nature of the work,
should be described so
as to attract correct
party/expertise.
Any minimum
qualifications must be
clearly defined
(expertise, experience,
bonding capacity, ability
to obtain the required
insurance).

Pre-qualify the
number of parties
who are qualified to
undertake and
complete the work
as appropriate for
market conditions
and market interest.
Potentially
qualified
contractors
could be
excluded from
the process.
Too small a list
could lead to
insufficient
competition.
Perception of
preferential
treatment of
bidders could
lead to lack of
interested
bidders on
future projects.
Records relating to
evaluation of pre-
qualification
submissions must be
made and maintained
for a reasonable period.
Criteria must be stated
based on the
requirements of the
project.

Report to project
executive
outlining the
process followed
and result of
process.
Debriefing
offered to all
bidders and
carried out in a
timely manner, if
requested.
Copy of
prequalification
documents on
file.
CAMF, Sections:
8.0. Capital
Procurement in
general
specifically section
8.5.3.2.4
Contractor
Prequalification
Provincial Pre-
Qualification
Guidelines and
Principles CAMF
Toolkit (Under
development)
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Objective Risk Criteria Evidence Policy
Reference
Preparation of
Construction
Contract

Cost-effective and
fair, open and
transparent
procurement, clearly
describing and
defining fair and
cost-effective
allocation of risks
and responsibilities.
Standard
documents may
not appropriately
allocate risk,
potentially
resulting in un-
intended risk
allocation and
price impact;
Risk that drafting/
negotiating
customized
contract form is
either too
expensive, has
one-sided risk
allocation or is
incomplete.
Contractors will
decline to bid or
will increase bid
amount (bid risk
premium) on
projects using non
standard
documents that do
not clearly
describe risks.
Use Agency or
industry-based or
general standard
form (i.e. CCDC)
amended with
limited variations as
approved by
designated
authority, to include
Agencys
requirements for the
project.
Amendments to
standard
documents,
including insurance,
indemnification and
limitation of liability,
should not
inappropriately
allocate risk and
should be
implemented
through approved
Supplementary
Conditions, without
direct amendment of
the standard
document.
Construction
contract based
on standard
form contract
with appropriate
amendments to
address public
sector business
practices and
risk tolerances
and approved by
the appropriate
approval
authority.
CAMF, Sections:
8.5.3. Traditional
Capital
Procurement

Contract Documents
reflect selected risk
allocation, and other
project-specific
requirements.
Industry standard
documents are not
necessarily
balanced fairly for
owners and may
impose unfair
costs and risks.

Use Agency or
industry-based or
general standard
form (ie CCDC)
amended with limited
variations as
approved by
designated authority,
to include Agencys
requirements for the
project and approved
Supplementary
Conditions.
Contract
Documents,
based on a
standard form
contract, contain
limited specific
Supplementary
Conditions to
achieve
necessary
adjustments,
approved by
appropriate
approval
authority.
CAMF, Sections:
8.5.3. Traditional
Capital
Procurement

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Objective Risk Criteria Evidence Policy
Reference
Standard documents may
not fully reflect public
sector risk allocation.
Standard documents may
not provide contract
support for some aspects
of the project.
Inappropriate risk
allocation may reduce
Contractor interest in
bidding on future projects.
Less competition could
lead to increased costs on
future projects.
Appropriate
standard
insurance forms
provided by Risk
Management
Branch, Ministry
of Finance
(RMB) are used,
or, if not,
revisions
approved by
RMB.
Standard forms
used; or non-
standard with
documentation
of approval.
CAMF, Sections:
8.5.3. Traditional
Capital
Procurement

Preparation of
Tender
Documents:

Use tender
documents that
have been
drafted for use
with the selected
construction
contract.
Instructions to bidders are
incomplete or
incompatible resulting in
non-compliant bids,
reduction of competition,
or higher bids.
Poorly drafted selection
and award criteria might
force Agency to select
sub-optimal bid or make
attractive bid unavailable.
Inappropriate privilege
clause may deter qualified
contractors from bidding.
Sub contractors
concerned about unfair
treatment and complain to
government.
Tender
documentation
should be
prepared only by
persons properly
trained and
qualified to do
so.
Coordinating
professional
accountable for
completeness
and coordination
of documents
(i.e. architect or
engineer).
Use of standard
tender process
with clear,
uncomplicated
tender closing.
Consider the
use of the bid
depository for
major trade and
supply contracts
(+$100,000).
Tender
documents that
meet industry
standards,
including
changes in
tender law.
Tender Form
requires
contractor
qualifications.
Resumes/releva
nt work histories
of persons
responsible for
preparation of
tender
documents.
Written evidence
of full
consideration,
provided by
project manager.

CAMF, Sections:
8.5.3. Traditional
Capital
Procurement
AIT
Chapter 5 ,
Procurement
particularly
Article 504
reciprocal Non-
discrimination
TILMA
Article 14 ,
Procurement

CAMF, Sections:
8.5.3. Traditional
Capital
Procurement

Capital Procurement Checklist

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Objective Risk Criteria Evidence Policy
Reference
Confirm
successful bidder
is financially
capable of
completing the
project or has
appropriate
bonding.
Project is not delivered
within scope, schedule,
and/or budget.
Bidders are third
party secured for
their bid.
Instructions
require bid
bond and
consent of
Surety.
CAMF, Sections:
8.5.3.
Traditional
Capital
Procurement

Optimize design
and pricing.
Risk that selected
design/material/equipm
ent solution described in
design documents is not
optimal.
Consider use of
separate and
alternate prices as
appropriate.
Written
evidence of full
consideration
by project
manager.
CAMF, Sections:
8.5.3.
Traditional
Capital
Procurement
Minimize legal
risks in
documentation.
Agency could make
decisions on improper,
or out-of-date legal
advice.
The law of tender is
changing constantly.

Obtain qualified
legal advice for
non-standard
documents or
unusual
conditions.
Prior to
commencing a
competitive
process, the
Agency should
identify who would
provide qualified
legal advice when
developing tender
documents (if not
standard) and
during the process
(if necessary).
Retention of
experienced
legal counsel.
Legal counsel
opinion on file.
CAMF, Section:
8.3 Legal and
Ethical Issues
Prepare tender
documents which:
attract qualified
bidders to
create
competition;
provide clear
description of
rights and
obligations
through to
award.
Bidders are uncertain as
to submission
requirements,
evaluation etc. with the
risk that either qualified
bidders fail to respond,
or Agency is faced with
claims.
Insufficient bidders
leads to a non
competitive price.
Tender
documents should
include procedural
information,
project and
proponent
information,
technical and legal
information.
Hold open bidders
conference to
answer questions.
Evidence that
work was
completed
including
complete
tender
documents
and written
evidence of
bidders
conference.
CAMF, Sections:
8.5.3.
Traditional
Capital
Procurement
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Objective Risk Criteria Evidence Policy
Reference
Administer tender
fairly in strict
conformity with
tender documents.
Project may result in
claims that ambiguities
not dealt with or
legitimate questions not
answered.
Advertise project
in compliance with
AIT and CAMF
(using BC Bid).
Meet AIT criteria
or CAMF
thresholds:
national
notification
required as
follows: for
ministries where
procurement value
is $100,000 or
greater for local
agencies where
the procurement
value is $250,000
or greater, and for
Crown
Corporations,
where the
procurement value
is $ 5 million or
greater.
TILMA requires
notification where
procurement value
is $100,000 or
greater for all
government
entities (effective
April 1, 2007 for
government; April
1, 2009 for Crown
corporations and
MASH sector).
Request or
observations from
bidders are
appropriately dealt
with: respond,
clarify and take
corrective action
as may be
required.
Evidence of
notification;
evidence of
approval to run
advertisement
s; if no
notification,
then
justification is
approved and
documented or
if direct award,
use Notice of
Intent.
Written
documentation
to show
appropriate
and in
accordance
with agency
policy with
sign-off form
appropriate
authority.
CAMF, Sections:
8.5.3.
Traditional
Capital
Procurement
AIT
Chapter 5 ,
Procurement
TILMA
Article 14 ,
Procurement

Capital Procurement Checklist

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Objective Risk Criteria Evidence Policy
Reference
Evaluation:

Evaluate tenders
strictly as required
by Instructions to
Bidders.
If evaluation
procedure
not followed,
Agency
could be
exposed to
claims from
unsuccessful
bidders.
Process should only
be administered by
persons properly
trained or qualified to
do so.
Where appropriate,
for example, projects
using RFPs, projects
which are complex or
very large, consider
whether process
monitor is needed for
project.
Where appropriate,
for example, projects
using RFPs, projects
which are complex or
very large, consider
preparing an
evaluation handbook
or tender opening
process handbook.
Documentation of
process monitor
existing and/or
justification for no
process monitor.
Evaluation
handbook exists and
in alignment with
project objectives.
Resumes/relevant
work histories of
persons responsible
for preparation.

CAMF, Sections:
8.5.3. Traditional
Capital
Procurement

Process is
not
transparent
and open.
Each tender is
opened in public and
signed by Agency
personnel present.
Proper record of
receipt and opening
of tenders.
Public opening with
attendance sheet.
CAMF, Sections:
8.5.3. Traditional
Capital
Procurement,
especially
8.5.3.3.1
Process may
not be fair.
The Agency is not
entitled to use or take
any benefit from one
tender in any
negotiation bid
shopping is unfair
and prohibited.

Capital Procurement Checklist

16 of 16

Objective Risk Criteria Evidence Policy
Reference
If circumstance requires
deviation from the stated
tender process, seek
legal advice before
proceeding. Examples
could include (not a
complete list):
Negotiating with a bidder;
Using privilege clauses;
Dealing with non-
compliant bids;
Disqualifying;
Cancellation of process.

Written evidence in
file that legal counsel
was consulted on
these issues.

Contract
Award:

Contract is
implemented
as intended.
Project is not
delivered on scope,
schedule and/or
budget.
Timely execution of
Contract Documents.

Contract date;
evidence of date of
start of work.
The notifications.
CAMF,
Sections:
8.5.3.
Traditional
Capital
Procurement
Dispute as to final
contract form and
contents i.e.
reference Project
Schedule; version of
specifications and
drawings etc.
Have a properly executed
contract.
The actual contract.
Certificate of
Insurance/Evidence of
Bonding.

Debrief session with
bidders who request one.
Written
documentation of
debrief sessions.

Monitoring and
performance feedback;
post contract evaluations.
Written
documentation of
reviews.